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NACTP and TIGERS Joint Session Boise, ID Internal Revenue Service

This session presented by Juanita Wueller on August 5, 2009, provides an overview of the current features and form changes in the MeF system for electronic filing and payment options, including new forms and schedules. It also discusses the transition plans and benefits of using MeF for faster acknowledgements and year-round filing.

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NACTP and TIGERS Joint Session Boise, ID Internal Revenue Service

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  1. NACTP and TIGERS Joint Session Boise, ID Internal Revenue Service presented by Juanita WuellerAugust 5, 2009

  2. MeF Today

  3. MeF Today • Currently provides electronic filing and payment options for businesses • Receives and processes returns in an internet environment • Provides real-time processing of acknowledgements, streamlined error-detection, and standardization of business rules • Capability to attach PDF files

  4. Form Changes 1120 Form Family • New Forms • Schedule G (1120), Information on Certain Persons Owning the Corporation’s Voting Stock • Schedule K (1118), Foreign Tax Carryover Reconciliation Schedule • PDF to XML • Form 8926 (1120, 1120-F), Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information

  5. Form Changes (continued) • 1120 Form Family (continued) • Form Changes - Form 1120/Form 1120-F - Form 3800 (1120, 1120-F) -Form 4136 (1120, 1120-F, 1120S) - Form 4684 (1120, 1120-F, 1120S) - Form 5471 (1120, 1120S) - Form 6478 (1120, 1120-F, 1120S) - Form 6765 (1120, 1120-F, 1120S) - Form 8586 (1120, 1120-F, 1120S) - Form 8621 (1120, 1120-F, 1120S) - Form 8810 (1120, 1120-F) - Form 8864 (1120, 1120-F,1120S) • Form 8865 (1120, 1120-S) • Form 8907(1120, 1120-F, 1120S) • Form 8909 (1120, 1120-F, 1120S) • Form 8910 (1120, 1120-F, 1120S) • Schedule H (1120-F) • Schedule I (1118) • Schedule K (1120) • Schedule K-1 (1120S) • Schedule B (1120) • Schedule M-3 (1120-F) • Schedule O (1120)

  6. Form Changes (continued) 1065 Form Family • New Forms • Schedule B-1, (1065) Information on Partner’s Owning 50% Or More of the Partnership (1065) • Schedule D-1, (1065, 1065-B) Continuation Sheet for Schedule D (1065) (Not needed for MeF) • Form Changes • Form 1065 • Form 1065-B • Form 4136 (1065, 1065-B) • Form 4684 (1065, 1065-B) • Form 8586 (1065, 1065-B)

  7. Form Changes (continued) 1065 Form Family • Form 8621 (1065, 1065-B) • Form 8864 (1065, 1065-B) • Form 8865 (1065, 1065-B) • Form 8907 (1065, 1065-B) • Form 8909 (1065, 1065-B) • Form 8910 (1065, 1065-B) • Schedule D (1065) • Schedule D-1 (1065) • Schedule K-1 (1065) • Business Rule Change • Form 1065 • Form 1065-B

  8. Form Changes (continued) Excise Tax & E-Filing Compliance (ETEC) Form Family (720/2290/8849) Form Changes • Form 2290 • 2 new checkboxes (Amended Returns & VIN Correction) • Form 8849 • Schedules 1, 2, & 8 are available to be filed electronically • Claims filed electronically on Schedules 2, 3, & 8 are processed within 20 days Business Rule Changes • Form 2290 • 4 additional business rules • Form 8849

  9. Form Changes (continued) Form 990EZ, Short Form Return of Organization Exempt from Income Tax • Schema Changes • Yearly Form Changes • Part VI, element renamed • Schedule Changes • Schedule A, Public Charity Status and Public Support for Form 990 • Schedule C, Political Campaign and Lobbying Activities • Schedule G, Supplemental Information Regarding Fundraising or Gaming • Schedule N, Liquidation, Termination, Dissolution, or Significant

  10. Form Changes (continued) Form 990PF, Return of Private Foundation • Schema Changes • Yearly Form Changes • Part VII-A, element changes

  11. MeF Statistics Thru 07-19-09

  12. MeF Fed/State Update • 16 States and 1 City in Production status for 1120: • AL, CO, FL, GA, ID, KS, MD, MI, MO, MT, NYCT, NYS, OR, PA, SC, UT and WI • 12 States in Production status for 1065: • AL, CO, GA, ID, KS, MD, MI, MT, NY, PA, UT and WI States that began production in 2009 are: For 1120 - New York City For 1065 - Colorado & Pennsylvania Changes received in July 2009: Virginia requested the 1120 & 1065 MOUs. The 1120 MOU has been sent for IRS executive signature. Rhode Island submitted an efile application to participate in 1120 & 1065.

  13. Fed/State Statistics Thru 07-19-09 TY 2008 Returns Made Available = 196,413 TY 2007 Returns Made Available = 53,913

  14. Fed/State Returns for Calendar Year 2008

  15. Fed/State Returns for Calendar Year 2007

  16. Key System Dates

  17. Key Publication Dates

  18. 1040 MeF Overview

  19. Deployment Schedule • Phase I – February 2010 • Form 1040 and 22 other forms/schedules: • Phase II – January 2011 • Current TY 2010 (23 forms) • Prior TY 2009 (23 forms) • Code optimization and additional hardware • Phase III – January 2012 • Approximately 125 additional forms/schedules • Current TY 2011 (148+ forms) • Prior TY 2010 and Prior TY 2009 (23 forms)

  20. Key Benefits of MeF MeF will deliver significant value and benefits including: • Faster Acknowledgements to Transmitters • Prior year filing (beginning in 2011) • Specific explanation of errors • Supports Federal and State e-filing • Year round filing

  21. Transition Plans • Volume Management Strategy • Intended to phase-in usage of the MeF system for Form 1040 • Strategy being developed in collaboration with MeF stakeholders • Will implement a volume ramp-up plan (draft plan shared with stakeholders on August 3, 2009 and posted to irs.gov on the 1040 MeF-related Transmitters/States web page at: http://www.irs.gov/efile/article/0,,id=204750,00.html • Technical Support will be provided (including daily conference calls) • e-File Application • e-file Application has been updated to add “MeF Internet, XML” as a transmission method for Form 1040. Impacts Transmitters, Software Developers and States. Note: States should contact Delcie Miller or Nancy Nicely with questions. We will notify the SWDers and Transmitters once that’s ready for implementation. • EROs currently participating in 1040 Legacy e-file will be automatically enrolled in 1040 MeF

  22. Transition Plans (continued) Paper Attachments • DCN versus Submission ID MeF does not require the use of a Submission ID in place of the DCN on Form 8453. You can leave the DCN boxes blank on the Form 8453. To assist the e-help Desk and Customer Service assistors, it will be beneficial to provide the Submission ID with the acknowledgement sent back to the preparer/filer. • There are five forms that currently have a paper indicator included on MeF: • Form 1098C, Contributions of Motor Vehicles, Boats, and Airplanes • Form 3115, Application for Change in Accounting Method • Form 2848, Power of Attorney and Declaration of Representative • Form 8283, Noncash Charitable Contributions • Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Note: Only Form 8283 is included in Phase I of 1040 MeF.

  23. Third-party Signature • Third-party Signature • During Phase I of 1040 MeF, Form 8283, Noncash Charitable Contributions will occasionally require a third-party signature. • Submit the form data in XML and either attach the PDF document that should be titled “Form 8283 Signature Document” or send the signed copy with the Form 8453 after setting the paper indicator.

  24. Transition Plans (continued) Legacy Error Reject Codes transition to MeF Business Rules TY 2008 Error Mapping is posted to irs.gov along with the Business Rules. TY 2009 Error Mapping will be posted by the end of August although the ERC information will not be completely accurate until later this fall.

  25. ATS Testing • The point of contact for testing is the e-help Desk. They will elevate any issues to the 1040 MeF contacts. • We are currently working with Electronic Products Services & Support on the PATS and ATS testing procedures. • EPSS has preliminarily determined that there will be separate assistors for ATS and PATS - for the same software developer.  • The 1040 MeF ATS assistors will be located in Austin.  • The 1040 PATS assistors will be located at multiple sites.  • The plan is for the PATS and ATS assistors to work independently.

  26. ATS Testing (continued) • We are currently developing the final return validation criteria for accepted test returns. Following is what has been developed to date: • After the return has been accepted, the assistor will verify: Specific lines on all the test scenarios: • Adjusted Gross Income • Taxable Income • Tax • Refund or Balance Due  • other line entries based on the forms in the test scenario • the dependencies (attachments) are properly attached  • PDF file is attached correctly (if the software supports PDF returns) • After these validations are complete and the test scenarios are correct, the software will be passed. • During ATS Testing we will conduct daily calls for the Software Developers to discuss any issues/problems they are experiencing.

  27. Key Dates • Software Developer Testing • MeF Assurance Testing System (ATS) – November 2, 2009 • Three test scenarios shared with current 1040 e-file • e-Help Support will be staffed for 1040 MeF and current 1040 e-file • Posting of Schemas and Business Rules to irs.gov • Final TY 2008 schemas and business rules - May 2009 • Initial TY 2009 schemas - June 11, 2009 • Subsequent TY 09 package – targeting end of August 2009 • Posting of Stylesheet Package and 1040 ELF Instance Document to irs.gov • TY 2009 1040 and 4868 Stylesheet Package – posted July 2009 • 1040 ELF Instance Document – posted July 2009

  28. Key Dates (continued) • Posting of MeF 1040-related publications to irs.gov • Pub 1345 Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns – September 2009 • Pub 1436 Test Package for Electronic Filers of Individual Tax Returns – September 2009 • Pub 4164 Modernized e-File Guide for Software Developers and Transmitters – October 2009

  29. Communications • MeF 1040 web pages on irs.gov • Located on the ‘Coming Soon to the MeF Program’ page at http://www.irs.gov/efile/article/0,,id=204750,00.html • Contains links for: • Forms (Phase I) • Publications • Software Developers, States, and Practitioners • Benefits of MeF • Calendar of Events • FAQs • Mailbox for MeF 1040 • Email Address: 1040mef@irs.gov • Questions on schemas or other technical issues concerning the program • Key questions/answers will be posted to irs.gov as frequently asked questions (FAQs) • MeF Status Page • After implementation, refer to the status page for important updates at http://www.irs.gov/efile/article/0,,id=168537,00.html

  30. Partnering Efforts • Calendar of Events for the remainder of 2009 is posted to http://www.irs.gov/efile/article/0,,id=206086,00.html • 1040 MeF Executive Council meetings (monthly) • 1040 MeF Working Group • Face-to-Face Meetings (semi-annual) • Next meeting tentatively scheduled for September 2009 (conference call capability will be available) • Conference calls (monthly) • 1040 MeF Schema conference calls (as needed) • Federation of Tax Administrators (FTA) TIGERS Group • Continue collaboration during quarterly meetings

  31. Questions

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